Published:
Jacksonville Bancorp Announces Second Quarter Results
JACKSONVILLE, Fla., July 24 /PRNewswire-FirstCall/ -- Jacksonville
Bancorp, Inc. (Nasdaq: JAXB), holding company for The Jacksonville Bank,
reported the Company had a second quarter net loss of $840 thousand, compared
to net income of $694 thousand in 2007. Total assets were $424 million at
June 30, 2008, compared to $392 million at December 31, 2007 and $368 million
at June 30, 2007. Period end loans increased by $31.9 million, or 9.4% (19%
annualized), for the six-month period from December 31, 2007, and by $51.7
million, or 16.0%, from June 30, 2007. Noninterest-bearing accounts increased
by $4.0 million, or 11.4%, from December 31, 2007.
(Logo: http://www.newscom.com/cgi-bin/prnh/20020410/JAXBLOGO )
There were four significant events that led to the loss for the quarter:
-- The termination of the agreement to acquire Heritage Bancshares, Inc.
on June 24, 2008 resulted in $430 thousand in merger-related costs that were
all expensed in the second quarter. This amount consisted primarily of
professional fees, system conversions and communication expenses. There are
no additional expenses expected from the termination in future quarters.
-- The Company had net loan charge-offs (excluding overdrafts as discussed
below) of $638 thousand during the quarter, driven by the charge-off of one
customer relationship in the amount of $419 thousand that resulted from
fraudulent activity in the customer's business. The Company is still
vigorously pursuing collection despite the charge-off.
-- The Company experienced an additional charge-off of $158 thousand on an
overdrawn depository account from a non-loan customer. The Company is
vigorously pursuing collection. There are no additional monies owed to the
company by this customer.
-- Provision expense was increased to $1.8 million for the second quarter
of 2008, compared to $201 thousand in the second quarter of 2007 and $363
thousand for the first quarter in 2008. In response to continued slowing
economic activity and softening real estate values, the allowance for loan
losses was increased to 1.12% of total loans at June 30, compared to .94% for
the comparable period in 2007.
Jacksonville Bancorp, Inc. President and CEO Gilbert J. Pomar, III stated,
"This was an unusual quarter where we had several large unique events that
negatively affected our earnings. We believe the termination of the Heritage
acquisition, while costly this quarter, was in the shareholders' long-term
best interests. The two large charge-offs highlighted were unrelated to what
is going on in the real estate market. Nonetheless, the Company is reacting
aggressively to changes in current market conditions."
During the quarter, the Company completed a private placement offering of
trust preferred securities of $7.6 million. At June 30, the Company had $7.2
million in excess capital above regulatory well capitalized levels. "The
proceeds from these issuances provide the Company the capital strength to take
advantage of growth opportunities while safeguarding against the current
economic downturn," Mr. Pomar went on to say.
On a basic and diluted per share basis, the net loss was $0.48, compared
to net income of $0.40 and $0.38, respectively, for the same period in 2007.
For the first six months of 2008, Jacksonville Bancorp reported a net loss per
diluted share of $0.17, compared to net income of $0.68, reported in the same
period in 2007.
Delinquencies (loans past due 30 or more days) decreased from $5.8
million, or 1.61% of total loans, at March 31, 2008 to $4.6 million, or 1.23%
of total loans, at June 30, 2008. Nonperforming loans increased $7.8 million
from $1.0 million to $8.8 million during the quarter. The increase is due to
the addition of two real estate loans secured by first mortgages to non-
accrual status.
Net interest income for the second quarter of 2008 was flat at $2.9
million, compared to the second quarter of 2007. Interest income for the
quarter declined $403 thousand when compared to the prior year as a result of
the ongoing reduction in short-term rates by the Federal Reserve as well as
the $7.8 million in loans that were placed on non-accrual during the quarter;
this was offset by average earning asset growth of $59.9 million. Interest
expense declined by $341 thousand as a result of the reduction in short-term
rates offset by a transition from core deposits into more expensive time
deposits and wholesale funding required to support the Company's strong
earning asset growth. The net interest margin was 2.93% and 3.14% for the
quarter and year, respectively, compared to 3.51% and 3.63% for the comparable
periods in 2007.
Noninterest income decreased 8.8% over the second quarter 2008 and 11.3%
for the six months ended June 30, 2008, compared to the same period in the
previous year. This is a result of a drop off in mortgage origination
referral income, due to the slowing real-estate market, partially offset by
income earned on an additional $3.5 million BOLI contract entered into by the
bank during the second quarter to help finance the cost of employee benefits.
Noninterest expense was $2.8 million for the quarter ended June 30, 2008, up
44.7% over the comparable period in the prior year. The Company absorbed $430
thousand in additional merger related expenses as a result of the termination
of the merger agreement with Heritage Bancshares, Inc. in the second quarter
of 2008. For the six months ended June 30, noninterest expense was $5.1
million, an increase of 26.7% over the same period in 2007.
"We will continue to focus on enhancing and executing our strategic
business model that has served us so well in the past while staying ever
mindful of the current banking environment. We are growing at a very solid
rate with quality assets as many of our competitors are reducing their
holdings. The events of this quarter will make us a stronger bank in the
future. The current industry conditions require that we remain nimble and
adjust our direction as the situation dictates. I am confident that our
experienced management team and strong capital position will provide the
stability necessary to emerge as the dominant community bank in theGreater
Jacksonville area," said Mr. Pomar.
Jacksonville Bancorp, Inc., a bank holding company, is the parent of The
Jacksonville Bank, aFlorida state-chartered bank focusing on theNortheast
Florida market with five full-service banking offices. The Jacksonville Bank
opened for business on May 28, 1999 and provides a variety of community
banking services to businesses and individuals inJacksonville, Florida. More
information is available at its website at www.jaxbank.com .
The statements contained in this press release, other than historical
information, are forward-looking statements, which involve risks, assumptions
and uncertainties. The risks, uncertainties and factors affecting actual
results include but are not limited to: our relatively limited operating
history; economic and political conditions, especially inNorth Florida;
competitive circumstances; bank regulation, legislation, accounting principles
and monetary policies; the interest rate environment; success in minimizing
credit risk and nonperforming assets; and technological changes. The
Company's actual results may differ significantly from the results discussed
in forward-looking statements. Investors are cautioned not to place undue
reliance on forward-looking statements, which speak only as of the date
hereof. The Company does not undertake, and specifically disclaims, any
obligation to publicly release any revisions to these forward-looking
statements to reflect events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events. Additional information
regarding risk factors can be found in the Company's filings with the
Securities and Exchange Commission.
JACKSONVILLE BANCORP, INC.
(Unaudited)
(Dollars in thousands except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
---------------------- ----------------------
2008 2007 2008 2007
---------- ---------- ---------- ----------
Earnings Summary
----------------
Total interest income ....$ 6,209 $ 6,612 $ 13,002 $ 12,655
Total interest expense ... 3,282 3,623 6,850 6,734
---------- ---------- ---------- ----------
Net interest income ... 2,927 2,989 6,152 5,921
Provision for loan losses 1,755 201 2,118 448
---------- ---------- ---------- ----------
Net interest income
after provision for
loan losses........... 1,172 2,788 4,034 5,473
Noninterest income ....... 260 285 512 577
Noninterest expense ...... 2,822 1,950 5,138 4,056
---------- ---------- ---------- ----------
Income (loss) before
income tax (1,390) 1,123 (592) 1,994
Income tax provision
(benefit) ..... (550) 429 (289) 757
---------- ---------- ---------- ----------
Net income (loss)......... $ (840) $ 694 $ (303) $ 1,237
========== ========== ========== ==========
Summary Average Balance
Sheet
-----------------------
Loans, gross..............$ 368,095 $ 311,974 $ 360,561 $ 299,608
Securities ............... 31,689 28,540 31,813 28,343
Other earning assets ..... 1,371 751 2,191 777
---------- ---------- ---------- ----------
Total earning assets .. 401,155 341,265 394,565 328,728
Other assets ............. 16,352 14,148 15,990 14,058
---------- ---------- ---------- ----------
Total assets ..........$ 417,507 $ 355,413 $ 410,555 $ 342,786
========== ========== ========== ==========
Interest bearing
liabilities .............$ 348,516 $ 294,656 $ 341,810 $ 283,382
Other liabilities ........ 41,501 36,775 41,515 35,728
Shareholders' equity ..... 27,490 23,982 27,230 23,676
---------- ---------- ---------- ----------
Total liabilities and
shareholders' equity $ 417,507 $ 355,413 $ 410,555 $ 342,786
========== ========== ========== ==========
Per Share Data
--------------
Basic earnings (loss)
per share $ (0.48) $ 0.40 $ (0.17) $ 0.71
Diluted earnings (loss)
per share .............. $ (0.48) $ 0.38 $ (0.17) $ 0.68
Basic weighted average
shares outstanding ...... 1,748,350 1,742,673 1,747,989 1,742,793
Diluted weighted average
shares outstanding ...... 1,748,350 1,819,819 1,747,989 1,821,155
Book value per basic share
at end of period ........ 15.01 13.94 15.01 13.94
Total shares outstanding
at end of period ........ 1,747,925 1,741,668 1,747,925 1,741,668
Closing market price per
share ...................$ 15.90 $ 28.25 $ 15.90 $ 28.25
Selected Ratios
---------------
Return on average assets (0.81%) 0.78% (0.15%) 0.73%
Return on average equity (12.29%) 11.61% (2.24%) 10.54%
Average equity to average
assets .................. 6.58% 6.75% 6.63% 6.91%
Interest rate spread ..... 2.44% 2.84% 2.60% 2.97%
Net interest margin ...... 2.93% 3.51% 3.14% 3.63%
Allowance for loan losses
as a percentage of total
loans ................... 1.12% 0.94% 1.12% 0.94%
Net charged off loans as
a percentage of average
loans (annualized) ...... 0.89% 0.00% 0.57% 0.00%
Efficiency ratio ......... 88.55% 59.56% 77.10% 62.42%
June 30,
---------------------
Summary Balance Sheet 2008 2007
--------------------- -------- --------
Cash and cash equivalents ...................... $ 6,024 $ 6,829
Securities ..................................... 28,296 26,636
Loans, net ..................................... 370,094 319,525
All other assets ............................... 19,823 15,142
-------- --------
Total assets ................................ $424,237 $368,132
======== ========
Deposit accounts ............................... $332,848 $301,217
All other liabilities .......................... 65,147 42,640
Shareholders' equity ........................... 26,242 24,275
-------- --------
Total liabilities and shareholders' equity .. $424,237 $368,132
======== ========
SOURCE Jacksonville Bancorp, Inc.
Copyright © 2008, PRNewswire
Copyright © 2008, NewsBlaze,
Daily NewsTags: Banking and Finance, , florida
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